Besides, subdued spot demand and profit-booking by speculators also put pressure on gold futures.
At the multi commodity exchange, gold prices for delivery in October fell by Rs 390, or 1.19%, to Rs 32,598 per 10 grams in business turnover of 525 lots.
Similarly, metal prices for delivery in the far-month December declined by Rs 370, or 1.12%, to Rs 32,685 per 10 grams in 86 lots.
Analysts said the fall in gold futures was mostly attributed to a weak trend overseas as prospects for an attack against Syria receded, and on bets the US Federal Reserve will start to pare stimulus as the economy improves.
Gold futures prices on Monday fell by 1.19% to Rs 32,598 per 10 grams.
Slackened demand at domestic spot markets and profit-booking by speculators at prevailing levels, too put pressure on the prices, they said.
Globally, gold prices fell 1.6% to trade at $1,373.38 an ounce in Singapore, its lowest level since August 23.